"The DCR-HC40 is right in the middle of Sony's 2004 MiniDV lineup. Its 1 Megapixel CCD separates it from the HC30 below it, while the HC65 above it has a larger 3.5" LCD display. While the HC-series looks much different than last years models, in terms of features the HC40 most resembles the TRV33 from 2003. In addition to a new, more compact design, the HC40 also features the new hybrid LCD display (which is actually usable outdoors), a new Nightshot Plus mode (which promises color video in low light), and it uses smaller Memory Stick Duo cards."

This article is an excellent and very detailed review of the Sony DCR-HC40. The camera appears to have a good video quality in a compact body, a nice LCD display and built in analog-to-digital conversion. However, the article does point out that the Nightshot Plus (a mode which promises color video in low light) doesn't show true color unless there's a lot of light, the still picture quality is not great and suffers from poor battery life.